Owning Multifamily Real Estate For Cashflow
Housing affordability is in crisis. Nearly three out of four American households are concerned about the lack of affordable housing, driving fierce demand for older Class B and C properties.
Workforce housing has become a multifamily class of its own, thanks to its potential for high returns even in tough times.
In a recession, high-rent Class A properties become less desirable, yet workforce housing is more insulated.
Location matters, but be wary of properties in areas where a single employer controls paychecks for most of the population.
Additionally, keep in mind that a four-flat building is not as resilient as a larger-unit apartment building when the economy slows and a tenant or two can’t pay rent.